STANDARDS OF THE SOUTH DAKOTA LEMON LAW

The following is a brief explanation of most relevant provisions of the South Dakota
lemon law.  The complete text of the lemon law can be found at S.D. Codified Laws Ann.
§ 32-6D-1 et seq.
VEHICLES COVERED
The South Dakota lemon law covers any motor vehicle intended primarily for use and
operation on the public highways.
The lemon law appears to cover used vehicles, but does not cover motor homes or
vehicles with a manufacturer’s gross vehicle weight rating of 10,000 pounds or more.
CONSUMERS COVERED
The lemon law covers the following “consumers”:
1.   The purchaser, for purposes other than resale, of a new or previously untitled motor
vehicle used in substantial part for personal, family or household purposes; and
2.   Any other person entitled by the terms of the warranty to enforce its obligations.
The lemon law appears not to cover a lessee.
VEHICLE CONVERTERS
The lemon law does not apply to vehicle converters.
PROBLEMS COVERED
The lemon law covers any “nonconforming condition”, which it defines as any condition
of a motor vehicle that:
1.   Is not in conformity with the terms of an express warranty issued by the
manufacturer to a consumer;
2.   Significantly impairs the use, value or safety of the motor vehicle; and
3.   Occurs or arises solely in the course of the ordinary use of the motor vehicle.
The lemon law does not cover any condition that arises or occurs as a result of abuse,
neglect, modification or alteration of the motor vehicle not authorized by the
manufacturer, or from any accident or other damage to the motor vehicle that occurs or
arises after the motor vehicle was delivered by an authorized dealer to the consumer.

LEMON LAW RIGHTS PERIOD
The lemon law establishes a “lemon law rights period”, which it defines as the period
ending one year after the date of the motor vehicle’s original delivery to a consumer, or
the first 12,000 miles of operation, whichever occurs first.
MANUFACTURER’S DUTY TO REPAIR
If a motor vehicle does not conform to any applicable express warranty, and the
consumer delivers the motor vehicle to the manufacturer or its authorized dealer and
reports the nonconforming condition during the lemon law rights period, then the
manufacturer must make the necessary repairs to remedy the nonconforming condition.
If notice of the nonconforming condition was first given during the lemon law rights
period, the necessary repairs must be made even if the lemon law rights period has
expired. However, the manufacturer’s duty to repair the nonconforming condition does
not extend beyond two years after the vehicle’s delivery or 24,000 miles, whichever
occurs first.
MANUFACTURER’S DUTY TO REPURCHASE OR REPLACE A VEHICLE
If the manufacturer or its authorized dealer is unable after a reasonable number of
attempts to conform the motor vehicle to any express warranty by repairing or
correcting a nonconforming condition that first occurred during the lemon law rights
period, the manufacturer must, at the consumer’s option, either replace or repurchase
the motor vehicle.
REASONABLE NUMBER OF REPAIR ATTEMPTS
The South Dakota lemon law establishes a presumption that a reasonable number of
attempts has been undertaken to conform a motor vehicle to the applicable express
warranties if, during the period of two years following the motor vehicle’s delivery or
24,000 miles, whichever is earlier, either of the following occurs:
1.   The same nonconforming condition was subject to repair attempts four or more
times by the manufacturer or its authorized dealers, at least one attempt occurred
during the lemon law rights period, plus the manufacturer had a final repair attempt,
and the nonconforming condition continues to exist; or
2.   The motor vehicle was out of service and in the custody of the manufacturer or an
authorized dealer due to repair attempts for a cumulative total of 30 or more
calendar days, including the final repair attempt, and at least one repair attempt
occurred during the lemon law rights period.
The 30 day period is extended by any period of time during which repair could not be
performed because of conditions beyond the control of the manufacturer or authorized
dealers, such as war, invasion, strike, fire, flood, or other natural disaster.

NOTICE AND OPPORTUNITY TO REPAIR
Before commencing any civil action, the consumer must notify the manufacturer by
certified mail of a nonconforming condition and demand correction or repair. The
notice must describe the motor vehicle, nonconforming condition, and all previous
attempts to correct the nonconforming condition, including the identities of persons
who made the attempts and the times the attempts were made.
If the number of repair attempts that have been undertaken meets the above
presumption at the time notice is given, the consumer must give the manufacturer a
final opportunity to cure the nonconforming condition. Within seven days of receiving
the written notice of a nonconforming condition, the manufacturer must notify the
consumer of a reasonably accessible repair facility. After the consumer delivers the
vehicle to the repair facility, the manufacturer has fourteen days to correct the
nonconforming condition and conform the vehicle to the express warranty.
DISPUTE RESOLUTION
If the manufacturer has established an informal dispute settlement procedure
conducted within South Dakota that complies with 16 C.F.R. Part 703, then the
consumer must first exhaust any remedy afforded by the procedure before instituting a
cause of action under the lemon law.
TIME PERIOD FOR FILING CLAIMS
An action must be commenced within three years following the date of the vehicle’s
original delivery to the consumer.

REMEDIES UNDER THE SOUTH DAKOTA LEMON LAW

REPURCHASE
The South Dakota lemon law sets out the following amounts that a manufacturer must
pay when it repurchases a motor vehicle under the lemon law:
1.   The full contract price, including charges for undercoating, dealer preparation and
transportation charges, installed options, and the nonrefundable portions of
extended warranties and service contracts;
2.   All collateral charges, including excise tax, license and registration fees, and similar
government charges;
3.   All finance charges incurred by the consumer after the first report of the
nonconformity to the manufacturer and its authorized dealer; and
4.   Incidental damages, including the reasonable cost of alternative transportation
during the period that the consumer is without the use of the motor vehicle because
of the nonconforming condition;
5.   Less a reasonable allowance for the consumer’s use of the motor vehicle.
Refunds must be made to the consumer and lienholder, if any, as their interests may
appear.
The reasonable allowance for use is that amount directly attributable to use by the
consumer before the first report of the nonconformity to the manufacturer or authorized
dealer.  The reasonable allowance must be calculated in accordance with the following
formula:

reasonable        # miles vehicle traveled before            full
allowance    =    the first report of nonconformity    X   purchase
for use                           100,000                          price
REPLACEMENT
When replacing a vehicle under the South Dakota lemon law, the manufacturer must
provide a comparable new motor vehicle.  The replacement must be accompanied by a
refund of all collateral charges, including excise tax, license and registration fees and
similar government charges.
The reasonable allowance for use does not apply to a replacement.